Long run and short run Phillips curves

Long run and short run Phillips curves

[jamesbrandon]

You are a life saver! I'm having a horrible time taking macroeconomics, never mind getting my head around this Philips curve concept. You've managed to break down some invisible wall that was blocking the receptors in my brain from picking up this mysterious economic frequency.... but seriously, this was by far the best explanation in a video that I could find!

[sujaysekhar]

Simply awesome - i am an economics teacher myself - but i wish i could explain with this much of clarity and simplicity. Thank you - i too learnt!

[waleedk.]

Phillips staring into my soul for 8 minutes was horrifying

[justtjatin]

great explantation, even a 30 min video didn't solve my query but this one was the saviour. kudos to the team

[AChannelFrom]

With the issue happening in Australia lately got me thinking about the Phillips curve that I learnt about at high school and uni. Australia is under their natural unemployment rate. ~4 to 5% is the natural rate in Australia but currently it is 3.5% and dropping fast due to the rising cost of housing due to landlords who are charging more based on what it costs them so they can hold their ROI.

The quarterly inflation rate is at 5.1% with the current interest rate at 1.35%. Due to the 13.5x fold rise in the interest rate (from 0.10%) most rentals have went up 10 to 30% just this year, which has led to more people not just... wanting a job.. but needing a job.. which is at the lowest level of the Maslow's hierarchy of needs as it is a requirement for survival.

Now that more people have a job it has raised the demand for the low stocks of food and goods we have, which has raised prices up severely, so inflation will continue to grow. Now when inflation grows, our central bank has a tendency to raise interest rates to keep their monetary policy stable. Which then has the lead on effect of landlords pushing up prices on rentals, which has the lead on effect of more people requiring a job to survive. It feels like we are going to go into some nasty loop if the govt and central bank cannot sort out the mess.

[Kokonati]

I’m taking Economics course in my Masters Degree and I can tell you now this guy explains it a hundred times better than my lecture who I’m paying to explain sh*t to me clearly 🤦‍♀️Thank you khan academy 😊

[phamhoangha]

Can you do the IS-LM-PC model, please?

[zidanhussain]

I can definitely trust this man’s voice

[escaperMY]

Khan definitely explained far more better than economics lecturer

[kushagra]

In short run Phillips curve holds true but not in long run.

[chuckchumbucket]

Movements along an SRPC indicate aggregate demand has changed. Shifts of the of the SRPC indicate a change in short-run aggregate supply.

[coleabrahams]

Tremendous video! Thanks, Khan Academy!

[edcarr]

On the AD/AS diagram the final inflation rate is higher than the final inflation rate on the Philips diagram...

[munano]

What happens to wages? Do they go up because prices are higher? Which means less workers but higher wages?

[zgredziks]

Sustainable rate of employment? What do you mean by sustainable? We need people to produce goods and sevices, do what kind od sustainbility are we taking about?

[hbhdtl]

Difference between the NRU and NAIRU!?

[easylearning]

Mujhe samjh nhi aya khan sir.... esko hindi m q nhi btate

[harrue]

i wonder how many of these out dated models are utter BS?

[alr]

Well explained, nevertheless the yellow dot is awful

[jansasha]

I still don't understand why philips curve would shift to the right!

Doesn't make sense to me, with higher inflation, there would be unemployment!